Madigan: Power auction meetings should be open

The state's electric utilities must open closed-door meetings for a coming auction that will affect rates for years to come, Illinois Atty. Gen. Lisa Madigan said in a complaint Thursday.

Closed meetings increase the risks of anti-competitive behavior, such as collusion, which could drive up prices, Madigan complained to the Illinois Commerce Commission.

The meetings were scheduled by a firm hired to manage the auction for Commonwealth Edison Co., which serves northern Illinois, and for Ameren Corp., which supplies electricity to most of southern Illinois.

The closed "bidder information sessions" with wholesale electricity suppliers are set for June 6 in New York City and June 7 in Rosemont, according to the complaint. A separate meeting for the public is scheduled in New York.

Madigan's complaint said the separate meeting "does nothing to decrease the risk of anti-competitive behavior at bidder-only meetings and contributes little to the openness and transparency of the auction process."

The auction system, approved by the ICC in January, is part of a path toward deregulation. Estimates vary, but the new system is expected to produce rate increases of at least 20 percent.

An Ameren spokesman said his company had not seen Madigan's complaint and could not comment.

ComEd released a statement late Thursday saying the company is working "to ensure the Illinois auction is conducted in an open and transparent manner and in a way that will maximize competition."

"The auction manager advised the utilities that there needed to be a forum for bidders to ask detailed questions about the software, the auction rules, the application process and credit requirements and other technical matters in a secure setting to encourage participation in the auction and ensure low prices for customers," the statement said.

ComEd said it plans to file a response with the ICC in support of its planned bidder-only and public sessions.

The Citizens Utility Board, meanwhile, said it would support Madigan's complaint.

"The fact they're holding meetings in secret and in New York is very, very troubling," said David Kolata, CUB's executive director. "This is simply energy company insiders conspiring to raise our prices. That's why we need to shine a light on this."

Since the meetings are in early June, "I would expect the commission would act quickly," said Susan Hedman, senior assistant attorney general.